The Anglo-Israeli financial talks here ended last Friday, it was learned today, with the agreement on the part of Britain to release nearly $28,000,000 in Israeli blocked sterling balances. Sir Stafford Cripps, Chancellor of the Exchequer, today received David Horowitz, Israeli economic and financial expert and head of the Israeli delegation to the parley.
Specifically, the agreement provides for the release of $2,800,000 in currency to Israel each month for the six-month period between May and October, 1949. In addition, $7,000,000 is sot aside for the payment for oil to be purchased by Israel up to October, 1949. Another$4,000,000 will be made available to pay for Israeli sterling commitments dating from April, 1945, when it was still part of the Palestine Mandate. The sum of $800,000 per month will be set aside for transfers of sterling to areas outside of the sterling bloc, but not to hard currency countries.
The repatriation of funds in Israel belonging to former British residents was also provided for in the pact. The return of these funds will be allowed "within a reasonable time" and special sterling releases will be made for these transfers. The total amount of Israeli sterling funds frozen by the British when the Palestine Mandate was terminated was in the neighborhood of $160,000,000.
The fact that most of the sterling releases must be spent in the sterling area does not particularly trouble the Israeli Government, it is learned here. The major purchases to be made by Israel, apart from raw materials and food, from the British commonwealth, will be spare parts for British-made machines now in Israel, railway equipment, certain heavy machines, chemical products and materials for prefabricated housing. In exchange, Britain would purchase oranges, potash, olive oil and chemicals. Discussions on prices and delivery dates will begin almost at once with individual companies. The underlying thought on both sides during the talks was understood to be that it is to the interest of both Britain and Israel that trade should be fostered.
Help ensure Jewish news remains accessible to all. Your donation to the Jewish Telegraphic Agency powers the trusted journalism that has connected Jewish communities worldwide for more than 100 years. With your help, JTA can continue to deliver vital news and insights. Donate today.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
